WORKDAY INC.

Red flags

• Cash, cash equivalents, and marketable securities fell 32% to $5.443 billion, despite $2.939 billion of operating cash flow, after $2.2 billion of acquisitions and $2.9 billion of share repurchases.
• Fiscal 2026 restructuring costs were approximately $303 million after a workforce reduction of approximately 7.5%; a further approximately 2% reduction is planned for fiscal 2027.
• Workday had $3.0 billion of senior-note principal outstanding, including $1.0 billion due in fiscal 2028 and $750 million due in fiscal 2030, although it had no revolver borrowings.
• Noncancelable third-party hosted infrastructure obligations total $1.056 billion through fiscal 2029, increasing fixed-cost exposure to cloud infrastructure providers.
• A July 2025 reporting issue affected high-volume data-source queries for certain customers and could have yielded incomplete results without an error message, highlighting operational and customer-trust risk.